HomeMy Public PortalAboutExhibit MSD 48 - Public Hearing Rate PresentationMSD Rate Commission Public Hearings
May - June 2018
Overview of Stormwater Capital Funding
Proposal
" G o v e r n m e n t U t i l i t y
S t a t e C o n s t i t u t i o n
V o t e r A p p r o v e d C h a r t e r
6 M e m b e r B o a r d o f T r u s t e e s
( 3 C i t y , 3 C o u n t y )
" T w o u t i l i t i e s : W a s t e w a t e r &
S t o r m w a t e r
" 5 2 0 s q u a r e m i l e s e r v i c e a r e a
A l l o f S t . L o u i s C i t y
8 7 % o f S t . L o u i s C o u n t y
" ~ 1 , 3 0 0 , 0 0 0 c u s t o m e r s
" 8 8 m u n i c i p a l i t i e s s e r v e d
M S D O v e r v i e w & D e t a i l s
" 7 T r e a t m e n t P l a n t s
" 3 5 0 + m i l l i o n g a l l o n s p e r d a y o f
w a s t e w a t e r t r e a t e d
" 4 , 7 4 4 m i l e s o f s a n i t a r y s e w e r s
" 1 , 8 0 6 m i l e s o f c o m b i n e d s e w e r s
" 3 , 0 2 8 m i l e s o f s t o r m w a t e r s e w e r s
" 4 t h l a r g e s t s e w e r s y s t e m i n t h e
U n i t e d S t a t e s ( a s m e a s u r e d b y
m i l e s o f s e w e r s h a n d l i n g
w a s t e w a t e r )
2
Current Status
Proposition S: April 2016
•Voters passed Proposition S in April 2016.
•The issue addressed by Proposition S was unequal storm sewer
operations and maintenance funding across our service area.
•Proposition S simplified and equalized these services with regard
to operations and maintenance in the public storm sewer
system.
•Now, MSD is exploring options to fund District-wide capital
projects addressing erosion and flooding.
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Current District Funding:
$0.0188 regulatory tax
+ $0.0971 stormwater tax
= $0.1159 total tax rate
•Includes regulatory
compliance
•Includes complete operations
and maintenance
•Includes limited funding for
necessary capital
improvements:
−FY17-20 = ~$67 Million
Stormwater Capital
Program (FINITE
PROGRAM)
Current Status
Proposition S: Outcomes
4
5
Localized
Flooding
Regional
Flooding Erosion
STORMWATER PROPOSAL:
Unfunded Stormwater Issues
5
" ~ 5 0 0 u n f u n d e d e r o s i o n
a n d f l o o d i n g i s s u e s
" ~ $ 5 6 2 M t o t a l e s t i m a t e d
c o s t
* B a s e d o n N o v e m b e r 2 0 1 7
d a t a
S T O R M W A T E R P R O P O S A L : U n f u n d e d
S t o r m w a t e r I s s u e s
6
* M a p l o c a t i o n s a r e a p p r o x i m a t e
" M S D w i l l i m p l e m e n t a S t o r m w a t e r C a p i t a l R a t e t o f u n d a $ 3 0 m i l l i o n p e r y e a r
s t o r m w a t e r c a p i t a l p r o g r a m .
"T h e S t o r m w a t e r C a p i t a l R a t e w i l l b e b a s e d o n t h e a m o u n t o f i m p e r v i o u s
a r e a o n e a c h c u s t o m e r s p r o p e r t y .
"A v e r a g e c h a r g e f o r a s i n g l e f a m i l y h o m e w i l l b e $ 2 . 2 5 p e r m o n t h o r $ 2 7 . 0 0
p e r y e a r .
"T a x e x e m p t e n t i t i e s w i l l b e s u b j e c t t o t h e S t o r m w a t e r C a p i t a l R a t e .
" S t o r m w a t e r C a p i t a l P r o g r a m w i l l a d d r e s s u n f u n d e d s t o r m w a t e r i s s u e s ( i . e . ,
l o c a l i z e d f l o o d i n g , e r o s i o n , a n d r e g i o n a l f l o o d i n g ) .
"E s t i m a t e s a r e t h a t a l l c u r r e n t l y i d e n t i f i e d i s s u e s c o u l d b e a d d r e s s e d i n
~ 3 0 y e a r s .
"C r e e k s , s t r e a m s , e t c . r e m a i n p r i v a t e l y o w n e d .
"F l o o d p l a i n m a n a g e m e n t r e s p o n s i b i l i t i e s r e m a i n w i t h m u n i c i p a l i t i e s .
" L e v e e D i s t r i c t s u n d e r a g r e e m e n t s w / M S D e x e m p t f r o m p r o p o s e d S t o r m w a t e r
C a p i t a l R a t e , a s s e r v i c e s a r e p r o v i d e d b y t h e L e v e e D i s t r i c t s w i t h i n t h e i r
j u r i s d i c t i o n s .
S t o r m w a t e r C a p i t a l F u n d i n g P r o p o s a l
7
" I m p e r v i o u s a r e a i s a h a r d e n e d s u r f a c e s u c h a s c o n c r e t e , b l a c k t o p , a r o o f t o p ,
c o m p a c t e d g r a v e l t h a t d o e s n o t a b s o r b s t o r m w a t e r a n d w h i c h g e n e r a t e s
s t o r m w a t e r r u n o f f .
" F l o o d i n g a n d e r o s i o n s e r v i c e s b e i n g p r o p o s e d u n d e r t h e n e w S t o r m w a t e r C a p i t a l
R a t e a r e d i r e c t l y i m p a c t e d b y t h e v o l u m e o f s t o r m w a t e r r u n o f f c r e a t e d b y
i m p e r v i o u s a r e a o n e a c h p r o p e r t y .
" F a i r e s t w a y t o d e t e r m i n e r e v e n u e c o n t r i b u t i o n o f e a c h p r o p e r t y i s t h r o u g h a n
i m p e r v i o u s a r e a m e a s u r e m e n t m e t h o d .
"I m p e r v i o u s b a s e d m e t h o d i s u s e d b r o a d l y t h r o u g h o u t t h e U n i t e d S t a t e s .
" A l l p u b l i c a n d p r i v a t e p r o p e r t y , i n c l u d i n g p r o p e r t i e s o w n e d b y g o v e r n m e n t a l a n d
n o n p r o f i t e n t i t i e s , w i l l b e s u b j e c t t o t h e S t o r m w a t e r C a p i t a l R a t e .
I m p e r v i o u s B a s e d R a t e R a t i o n a l e
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Impervious Based Rate Rationale (con’t)
•Aug 2007: Rate Commission recommended various MSD taxes and 24¢ fee be replaced by
stormwater impervious fee.
•Dec 2007: MSD Board approved Rate Commission recommendation to implement
impervious fee.
•Mar 2008: Impervious fee implemented.
•July 2008: Zwieg vs MSD lawsuit, challenging the impervious fee, is filed.
•Aug 2010: MSD suspended impervious fee and reinstituted various taxes and 24¢ fee.
•July 2008 - Nov 2013: Circuit, Appellate, and Missouri Supreme Courts declared the
impervious fee unconstitutional without voter approval.
•July 2008 - Nov 2013: Courts unanimously agreed MSD not required to refund
impervious fee revenue that was collected and spent on stormwater services.
•Aug 2015: Rate Commission recommended MSD consider an impervious based
stormwater fee in the future.
•Jan - June 2017: Public outreach and surveying shows that an impervious based rate is
the preferred method for funding a stormwater capital program.
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•ERU (or Equivalent Residential Unit) is a measure of the average number of
square feet of impervious surface found at residential customer properties
throughout the District.
−The current ERU – and the ERU used in the proposal – is 2,600 square feet.
•The proposed rate was determined by taking the recommended capital
improvement program (~$30 million annually) and dividing by the estimated
number of Equivalent Residential Units (ERU) within MSD’s service area.
•Each ERU (or 2,600 square feet of impervious area) will be charged
$2.25 per month -or- $27.00 annually.
Stormwater Capital Rate Calculation
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" S i n g l e - f a m i l y r e s i d e n t i a l c u s t o m e r c h a r g e s w i l l b e c a l c u l a t e d u s i n g a 4 - t i e r s y s t e m t h a t
d i f f e r e n t i a t e s b e t w e e n t h e a m o u n t o f i m p e r v i o u s s u r f a c e a r e a o n i n d i v i d u a l p r o p e r t i e s .
"T i e r r a n g e s w e r e d e v e l o p e d u s i n g E R U a s r e f e r e n c e p o i n t .
"T i e r s a r e a n a c c e p t a b l e a n d c o m m o n i n d u s t r y p r a c t i c e .
"U s i n g 4 t i e r s s h a r e s t h e c o s t o f t h e s e s e r v i c e s m o r e e q u i t a b l y a m o n g s t c u s t o m e r s .
" T i e r s
"T i e r 1 : 2 0 0 2 , 0 0 0 s q u a r e f e e t = $ 1 . 4 2 p e r m o n t h ( $ 1 7 . 0 4 a n n u a l l y )
"T i e r 2 : 2 , 0 0 1 3 , 6 0 0 s q u a r e f e e t = $ 2 . 2 5 p e r m o n t h ( $ 2 7 . 0 0 a n n u a l l y )
"T i e r 3 : 3 , 6 0 1 6 , 0 0 0 s q u a r e f e e t = $ 3 . 7 4 p e r m o n t h ( $ 4 4 . 8 8 a n n u a l l y )
"T i e r 4 : 6 , 0 0 0 s q u a r e f e e t o r o v e r = $ 6 . 8 4 p e r m o n t h ( $ 8 2 . 0 8 a n n u a l l y )
" M u l t i - f a m i l y , c o m m e r c i a l c u s t o m e r s , a n d o t h e r n o n - r e s i d e n t i a l c u s t o m e r s w i l l b e c h a r g e d
b a s e d o n i m p e r v i o u s s u r f a c e a r e a d i v i d e d i n t o E R U s .
"E x a m p l e : C o m m e r c i a l c u s t o m e r w i t h 1 0 , 0 0 0 s q u a r e f e e t o f i m p e r v i o u s a r e a e q u a l s 4
E R U s ( 1 0 , 0 0 0 s q u a r e f e e t � 2 , 6 0 0 s q u a r e f e e t = 3 . 8 5 = r o u n d e d u p t o 4 E R U s ) .
" F i s c a l Y e a r 2 0 2 2 ( J u l y 1 , 2 0 2 1 t h r o u g h J u n e 3 0 , 2 0 2 2 ) w o u l d b e t h e f i r s t f i s c a l y e a r o f f u l l
r e v e n u e c o l l e c t i o n .
"T o t a l R e v e n u e f r o m S i n g l e - F a m i l y R e s i d e n t i a l C u s t o m e r s = $ 1 3 , 8 7 4 , 5 6 9
"T o t a l R e v e n u e f r o m M u l t i - F a m i l y , C o m m e r c i a l , a n d O t h e r N o n - R e s i d e n t i a l
C u s t o m e r s = $ 1 6 , 2 3 6 , 5 3 1
S t o r m w a t e r C a p i t a l R a t e C a l c u l a t i o n ( c o n t )
1 1
Billing Frequency
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•The Stormwater Capital Rate will be appear on the
monthly bill of MSD customers that are also billed for
wastewater.
•Customers not billed for wastewater with properties containing
more than 20 ERUs will be billed monthly.
•All other customers not receiving MSD wastewater services will
be billed on a quarterly basis.
" P e r v i o u s s u r f a c e s = 1 0 0 % c r e d i t
G r e e n r o o f s a n d e n g i n e e r e d p e r v i o u s p a v e m e n t a r e n o t b i l l a b l e a r e a s .
R e m o v i n g i m p e r v i o u s a r e a r e d u c e s b i l l a b l e a r e a .
o R e s i d e n t i a l M o v e p r o p e r t y t o a l o w e r t i e r .
o N o n - R e s i d e n t i a l R e d u c e n u m b e r o f E R U s .
" S t o r m w a t e r r u n o f f t o l a r g e r i v e r s ( M i s s o u r i , M i s s i s s i p p i , M e r a m e c ) o r o t h e r e q u i v a l e n t s i t u a t i o n s = 7 0 % c r e d i t
" B e s t M a n a g e m e n t P r a c t i c e s = 5 0 % c r e d i t
D e s i g n s t a n d a r d s e x i s t , v o l u n t a r y ( n o t r e g u l a t o r y )
R e s i d e n t i a l - $ 1 3 5 . 0 0 i n c e n t i v e p a y m e n t f o r m o r e t h a n 5 0 0 s q u a r e f o o t o f t r e a t e d a r e a .
C o m m e r c i a l 5 0 % c r e d i t o n t r e a t e d a r e a w i t h a 1 E R U m i n i m u m .
" L o w i m p a c t d e v e l o p m e n t = 3 5 % c r e d i t
A p p l i e s w h e n i m p e r v i o u s a r e a i s l e s s t h a n 1 5 % o f t h e t o t a l p a r c e l a r e a .
M i n i m u m l o t s i z e o f 3 a c r e s .
M i r r o r s E n v i r o n m e n t a l l y S e n s i t i v e D e v e l o p m e n t d e s i g n s t a n d a r d t o m i n i m i z e w a t e r s h e d i m p a c t s .
S t o r m w a t e r C a p i t a l R a t e I n c e n t i v e P r o g r a m s
1 3
" P r o p o s a l s u b m i t t e d b y s t a f f t o R a t e C o m m i s s i o n o n F e b r u a r y 2 6 , 2 0 1 8 .
" R a t e C o m m i s s i o n h a s u p t o 1 6 5 d a y s ( i n c l u d i n g 4 5 d a y e x t e n s i o n ) t o r e v i e w
p r o p o s a l a n d m a k e a r e c o m m e n d a t i o n t o M S D s B o a r d o f T r u s t e e s .
" T e c h n i c a l M e e t i n g s A p r i l t h r o u g h J u n e / J u l y 2 0 1 8 ( s c h e d u l e c o u l d c h a n g e b a s e d o n
R a t e C o m m i s s i o n n e e d s ) .
"U p d a t e s a v a i l a b l e @ w w w . s t l m s d . c o m
" P u b l i c H e a r i n g s M a y 8 , M a y 1 5 , M a y 1 7 , M a y 2 2 , M a y 3 0 , J u n e 6 , & T B D i n J u n e .
" U n d e r c u r r e n t s c h e d u l e , p r o j e c t a R a t e C o m m i s s i o n r e c o m m e n d a t i o n d e l i v e r e d t o
M S D s B o a r d o f T r u s t e e s i n A u g u s t .
" I f a p p r o v e d , e a r l i e s t p u b l i c v o t e p o s s i b l e A p r i l 2 0 1 9 .
" I f a p p l i c a b l e , n e w r a t e w i l l b e e f f e c t i v e J a n u a r y 2 0 2 0 .
R a t e C o m m i s s i o n T i m e l i n e F o r S t o r m w a t e r
C a p i t a l R a t e P r o p o s a l
1 4
" M S D s t a f f w i l l b e g i n R a t e P r o p o s a l d e v e l o p m e n t i n J u l y 2 0 1 8
" R a t e C o m m i s s i o n m e e t i n g s a r e s c h e d u l e d t o b e g i n i n S e p t e m b e r
2 0 1 8
" R a t e P r o p o s a l w i l l b e s u b m i t t e d t o t h e R a t e C o m m i s s i o n i n
F e b r u a r y / M a r c h 2 0 1 9
" M S D B o a r d w i l l c o n s i d e r t h e W a s t e w a t e r R a t e P r o p o s a l i n O c t o b e r
2 0 1 9
" I f a p p l i c a b l e , n e w w a s t e w a t e r r a t e s w i l l b e e f f e c t i v e J u l y 2 0 2 0
1 5
W a s t e w a t e r R a t e C o m m i s s i o n T i m e l i n e
Lance LeComb
Manager of Public Information & Spokesperson
(314) 768-6237
llecomb@stlmsd.com
www.stlmsd.com/ratecommission
More Information / Questions
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